2009-09-24-2009-09-02

To buy 18,000 acres in AB & SK, gaining 310 BO/d.

Eagle Rock Exploration Ltd., Calgary, (Toronto Venture: ERX) plans to sell certain oil and gas rights and associated wells in southern Alberta and southwestern Saskatchewan from an undisclosed arm's length party for C$21 million. The assets are on 18,000 net lease acres in the Red Coulee area of southern Alberta and the Beverley area of southwestern Saskatchewan. Production as of July was 310 barrels of oil per day. Pro forma, Eagle Rock will retain production of approximately 135 barrels of oil equivalent per day (80% crude oil) from the Coutts, Spring Coulee and Enchant areas of southern Alberta. Eagle Rock has net debt of C$20.3 million as of June 30, which was reduced by $1.2 million because of an August property sale. If this deal is successful, Eagle Rock will have a positive working capital surplus of approximately C$1.5 million. National Bank Financial is financial advisor to Eagle Rock. The deal is expected to close by Oct. 15.